Tuesday, February 26, 2013

Deficit Is Falling But The Press Won't Tell Us, Why?

Dave Johnson writing for Progressive Voices says "Deficit Is Falling Dramatically But, Only 6% Know That.

Johnson blames the press for the fact that 94 percent of us don't know the facts!

Read the entire story at Progressive Voices.

8 comments:

  1. Maybe selective choosing of items that make up the deficit? Kinda like Brown and the media did with the California budget? Take some things out of the general fund so they don't count. Ignore other things like pension and medical benefit debt.

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  2. But all it took for California to right itself was a small sales tax increase. Revenue would also fix the US deficit. Bush knew we were spending too much money so he decided that the answer to too much spending was to take less money in. Most folks would try to cut spending and raise revenue but not the Republicans. They go for one magic fix called tax cuts. Their fix would be akin to having a family spending too much money but instead of someone getting more hours or taking on another part time job, they instead decide to work less so that they don't have as much money to spend. This is Republican logic.

    The chart would seem to represent the country being pulled out of the ditch. Once it got back to work the numbers start to ad up. This proves why we can't cut our way to prosperity. Bush already did that and we got the great recession. I would have to agree that some of these numbers we get are manipulated and always have but just look around. Are 3/4 of a million people losing their jobs monthly anymore? No. Are businesses boarding up as fast as they can? Well yes in weather prone areas but not because business is bad. Has Wall St. ever done better? No they have not. The numbers, I would argue, back up what you are seeing overall.


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  3. You're nuts. The California budget wasn't balanced. They just raised a tax, shifted the balance of items in the the general fund so some things didn't need to be included, and ignored the billions of dollars in pension and medical benefits debt for government employees. The axe has yet to fall completely.

    Another idea as far as the supposed deficit falling ( I suspect my first guess is pretty close to right): Printing money. Despite them saying inflation is minimal, prices have gone higher and higher for many things- most of them that aren't included in inflation indexes like food and gas. It could be that with so much money being printed, the dollar keeps being devalued.

    That means it would cost less to pay off the debt using current dollars because the debt was acquired earlier when the dollars that make up that debt had more value. I've read some left wingers saying that is exactly how the debt should be dealt with: inflation.

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  5. Sorry Tom, but I'm more in the Fred camp here. Our unemployment and inflation numbers actually did use to mean something, until first under Reagan, then under Clinton, the measuring sticks for these figures were shamefully manipulated out of all sense of accuracy to the prior decades. Then under Bush II, we simply stopped reporting M3, meaning we have no idea how much money is actually being printed.

    The actual unemployment rate hasn't been under 10% for most of my lifetime, and has been over 20% since the financial collapse of 2007-08 -- which we have NEVER recovered from in a meaningful sense. Chris Hedges has done stellar reporting from the 'waste lands' of growing third world desperation in the US -- just because the weed bubble is keeping Humboldt afloat doesn't mean this is an experience shared by Camden, Detroit or many other devastation zones.

    Getting back to the original topic, read all about the REAL deficit at Shadow Stats run by John Williams, a REAL economist who keeps track of the actual numbers at shadowstats.com -- he estimates the actual annual deficit at $6.6 trillion as of December.

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  6. Reagan added the people in the military to the employment rolls. They were never included as employed before. Bush launched and fought two wars without ever putting them on the books. Yes there is manipulation of numbers but Republicans spend more money than Democrats as a percentage of GDP and that's a fact. Also a fact is that since we print our own money, unlike Greece, we can inflate our way out of this. This is exactly what we did after WW2. We spent money we didn't have on infrastructure, health care and education. In doing so we passed the rest of the world in wealth and have stayed there despite the best efforts of Republicans and war mongers. Suggesting that we can cut our way to prosperity is where you guys and I part ways. If you don't make enough money to pay your bills, do you cut your own hours or find more money? Do you get rid of the house or car or get another job? Do you use the credit card to start a new business or just watch your kingdom fall to pieces? There are two ways to go with this and I would move in the opposite direction than both of you.

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  7. And Fred, as far as California goes, we don't print our own money so we can't inflate our way out of the mess. We raised taxes and cut programs. Yes it is true that all of that cutting has not been replaced which should make libertarians like yourself happy. The state is in the best shape it has been in since Gray Davis was Governor. For years we tried to cut our way out of the problem but a simple tax increase in this case was what we needed at this time. The federal government can either go the way of California or Greece, it's up to the Boehner in congress.

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